If my position is getting terminated company wide and I refuse to step down, do I get a severance when I lose my job?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If my position is getting terminated company wide and I refuse to step down, do I get a severance when I lose my job?
I’m currently at a assistant managerial type position. According to news passed down but never told to me directly on June 1st, they will be terminating my position. It was told to managers that people in my position could apply to be ASMs which would be a step up or they would be automatically demoted to a sales rep position. If the company doesn’t inform me directly ahead of time of these changes and just demotes me and lowers my pay rate, can I refuse and get paid out a severance package or if they do notify me, how long must I be notified to not pursue legal action?
Asked on April 27, 2019 under Employment Labor Law, Massachusetts
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
There is no legal right to severance: the law does not require it. Your position can be terminated without any compensation. You are only entitled to severance if either the company voluntarily chooses to offer it to you (including possibly in return for you signing a Separation and Release or confidentiality/non-disclosure agreement) or if you have a written contract which, by its plain terms, guarantees you severance.
If they demote you to a low-enough position (e.g. a significant-enough pay cut; generally 1/3 or more), you may be able to quit but still get unemployment, under the theory you were "constructively" (or effectively) terminated by being given a pay cut that no reasonable person would stand for. Be advised that there is no hard-and-fast rule about this: it is a subjective determination, which means that you cannot count 100% on the unemployment office/labor department agreeing that what happened was bad enough to constitute constructive termination. If you go this route, there is a chance you will not be unemployment eligible.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.